DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

HOUSING PRODUCTION AND MORTGAGE CREDIT, PHA NONADMINISTRATIVE LIMITATION

GSA SPACE RENTAL

Mr. BOLAND. The nonadministrative expense limitation includes an increase of $9,766,000 for GSA space rental charges. Did the Department make any review of the charges claimed by GSA for space rental?

Mr. KLIMAN. Mr. Chairman, the bill came to the Department in grand total. and this is included in part 3 of the justification volumes. Portions of the total, of course, represented charges to the FHA fund. We dealt with the General Services Administration to determine the adequacy of the charges.

Mr. BOLAND. Did you make any effort to reduce the charges that GSA has levied against you?

Mr. KLIMAN. There was an attempt made to make sure that the charges were reasonable.

Mr. BOLAND. What sort of an attempt was it? The reason I ask is because this is the first time that you are paying these charges to GSA for Government-owned and Government-leased space. Of course, all the departments and agencies are doing this. We are trying to get a handle on whether or not GSA is charging too much, and whether or not they are going to build up that fund.

What sort of an effort did you make? Did you have any people in your Department determine what would be a fair rental for Government-owned space?

Let me ask you-and you probably don't have the answer-but I would like to have you supply it for the record: How much of the charge is being levied against Government-owned space?

Mr. KLIMAN. I don't have that offhand.

Mr. BOLAND. That ought to be easy to get. Supply that for the record.

Also whether or not you have actually looked at the figures that GSA has billed you or is billing you, and whether or not those figures are fair?

Mr. KLIMAN. We have a statement under preparation on these matters. I will be happy to supply that.

[The information follows:]

Data on space rental, FHA nonadministrative expenses

The proposed GSA quality ratings upon which GSA rates are to be based have been reviewed, and some adjustments were made as a result of that review. The final rates at each location throughout the nation are not yet available to HUD. The total estimated cost as furnished to us by OMB and GSA would result in an average overall annual cost of $6.11 per square foot, which seems reasonable.

CENTRALLY SHARED SUPPORT SERVICES

Mr. BOLAND. On page H-1, what do these centrally shared support services cover?

Mr. KLIMAN. That includes, among other things, a share of the space that you just talked about, space costs insofar as the central office

is concerned. It also includes a substantial portion of the Office of Finance and Accounting, which as you may know now includes the entire comptroller's operation handling the FIA insurance program. as well as a share of centralized communications cost, data processing and other Administration support, and a part of the Office of Inspector General.

Mr. BOLAND. Have any new items of expense been added since last year? The space rental charge is a new item. Have any other new items been added since last year to the centrally shared support services item?

Mr. KLIMAN. That is the only one I am aware of.

Mr. BOLAND. Give a detailed comparison for the record of the elements of cost, and the comparative changes made in this item for 1974 from a year ago. The actual cost in 1972. with a substantially higher workload, was $10,085,000. For 1973 you requested $12,159,000, but you now estimate $20,746,000 for this item in 1973.